I'm not a fan of the two recent Federal Reserve interest rate cuts. Twice... in eight days... 1.25% total (.75 and then .5 today). My Online Savings account (HSBC) rate dropped to 3.8% yesterday. I imagine it will drop another half percent shortly. Damnit!
I get the idea. Lowering interest rates discourage savings and increases spending at the macro level.
But why fuck over the people who aren't spenders? Do you really think the $300 or so dollars Bush will give me in the form of a check later this year will make me spend? No. I'll probably save it. Why? Because I want to be prepared. Life, emergencies, etc. Ya, sure, I'll take a vacation or go out to a nice dinner every so often. I would have done that anyways, with or without your $300 dollars and cut in interest rates.
If you want me to spend, make me feel better by making gas $1, like it was when I left High School in 2001. I feel like inflation of gas prices has a greater effect on the economy. I'm paying more to travel; I'm paying more for food because of the transportation to get food to the grocery store; I'm paying more for everything else that gas touches. Get it? Fix that. Invest and pour money into clean energy. Invest more into incentives for Hybrids and they people that drive them.
Don't make my bank account suffer. Your $300 will be pretty much useless to me. I'm pissed.
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